Occupied vs Vacant – Buying US PropertyJune 15, 2015
4 Options For Buying Houses For Sale In America
Savvy investors are working their trusted off market sources to secure their next property and competition is fierce. Local and foreign USA real estate investors have four options to consider when adding the next deal to their portfolio. The options that investors have for single family homes are; vacant in need of major work, vacant in need of minor work, vacant move in ready and occupied. Since 2010, America Property Source has been delivering all four varieties to our clients. Which one’s right for you?
Vacant – The Full Rehab (reno) We are seeing the majority of the banged up “fixer uppers” going to the local investors on the ground who like to roll up their sleeves, get their hands dirty and who run their own crews to “turn” (or reno) these homes. These deals also work for out of town investor who have been in the real estate game and don’t mind improving a property. You want to be confident in your team to deliver a quick rehab on time and on budget.
Vacant – Light Rehab – New paint and carpet is a basic light rehab that will clean up a home at a low cost. You will probably have to install a few new appliances, service the AC unit and change the locks. Remember that a good carpet clean will extend the life of your carpet for a few more years.
Vacant – Move in Ready – We often see vacant properties advertised as rent ready. You will never know exactly how ready these homes are until you have a team member walk through the house. If the property has been vacant for a period of time, be prepared to have your American property management’s preferred cleaners give the place a once over before they list the home for rent.
Occupied – The Occupied Deal – Start collecting rent day one. These deals are the best. If you are sourcing your USA real estate with a reputable company, the previous investor will be concerned with keeping their reputation intact and deliver a well placed tenant. Your property manager will take over the same day that escrow closes and the title changes over to your name.
Home ownership in the United States is not the priority that it once was. We are seeing baby boomers across the country (and around the world) downsizing and moving closer to city centers. Mid west cities like Cleveland, Ohio are experiencing a historically high demand for downtown apartment living. USA real estate investors are cashing in on this shift in behavior from homeowner to happy renter.
The millennial’s in the USA also prefer to rent. They are choosing to focus on their careers rather than achieving home ownership. Millennial’s are attracted to urban areas and trendy pockets where smart US landlords are investing.
What about all the suburbs? Don’t worry, living “way out in the burbs” is still popular with families. Renting in the burbs is now a common trend now across the country.
Even though interest rates remain historically low, US banks are still moving forward cautiously. The scales are still heavily tipped towards renting in the United States and there has never been a better time to be a landlord.